Indian Red Cross Society Vs Commissioner of C E & S.T. (CESTAT Chandigarh)
Summary: The CESTAT, Chandigarh considered an appeal filed by M/s Indian Red Cross Society against the order of the Commissioner (Appeals) confirming service tax demand of Rs. 12,94,980/- for April 2005 to March 2009, along with interest and penalties. The Department treated the Society’s assistance to the Registering and Licensing Authority, Chandigarh, as manpower recruitment or supply agency service and also demanded tax on first-aid training provided to students and employees of various organisations. The Society contended that it was a welfare and voluntary organisation functioning on a no-profit-no-loss basis and that, under its “Sahayata Project”, its staff assisted the RLA office in issuing driving licences and registration certificates.
It received a fixed share of statutory fees on a per-case basis and retained control over its staff. The Tribunal found that the Society was a welfare and voluntary organisation and did not fall within the definition of a commercial concern required for levy of service tax under the manpower recruitment and supply agency category. The Tribunal also held that the first-aid training provided to students and colleges did not fall within Commercial Training or Coaching Service for the relevant period. It noted that the training formed part of the Class 9 health education syllabus prescribed by CBSE and only nominal fees were charged.
